Qantas CEO Vanessa Hudson boasts that Aussies still prioritise travel despite price hikes

Qantas Airways chief executive Vanessa Hudson says price hikes haven’t turned off Australian fliers, who would prefer to cut back on drinking or socialising rather than travel.

In a speech to professional investors that was followed by a jump in the Qantas share price, Ms Hudson boasted demand for Qantas and Jetstar flights was “resilient” despite the war over Iran that has disrupted air travel around the world.

After initial disruptions, jet fuel is becoming easier to secure, she said, as supplies from the Middle East are replaced by shipments from the US, Mexico and India.

A 20 per cent cut in the number of tickets available, due mainly to flight cancellations by Middle East carriers such as Emirates, has also cut demand for aviation fuel.

“We are becoming more optimistic on fuel supply,” Ms Hudson told a Sydney investment conference organised by Macquarie Group.

Last month, in response to a jump in oil prices, the Sydney-based airline raised airfares and said it would cut about 5 per cent of flights within Australia in April, May and June. Fares would increase around 4 to 6 per cent on average, Qantas said.

Asked on Tuesday if the price hikes had put off customers, Ms Hudson said: “We haven’t seen that. Across both domestic and international, it is resilient.”

“We have seen a reduction in entertainment and alcohol to the prioritisation of travel,” she said in response to another question. “Travel has remained the number one discretionary priority.”

Qantas shares rose from $8.36 when she started speaking to $8.43 afterwards. The shares have fallen 20 per cent this year in response to the war.